PayPal is a for-profit company and thus charges transaction fees to cover its costs and make a profit. While the company mainly charges these fees to online merchants, there are limited cases in which the sender may need to pay a fee as well. Understanding PayPal’s transaction fees may help you avoid paying more than necessary when using the service.

Online Purchases

Purchasing items online is completely free for buyers in the U.S. As some sites charge transaction fees for credit or debit purchases, utilizing the PayPal option may actually save you money.

Receiving Payments

PayPal charges U.S. sellers a standard rate of 2.9 percent and an additional fee of $0.30 per transaction as of the time of this publication. As such, you can build this fee into your pricing structure as needed.

Transferring Funds

Sending money to family or friends is free when using your PayPal balance or bank account. However, the company charges a fee of 2.9 percent plus an additional $0.30 when using a debit or credit card.

International Payments

International sellers are responsible for a 3.9 percent transaction fee plus an additional amount dependent on the type of currency received. When transferring funds outside the U.S., there is also a variable fee of 0.5 to 2 percent -- depending on the receiver’s location -- when using your PayPal balance or linked bank account. This fee rises to between 3.4 and 3.9 percent when using your debit or credit card.